+255%
total yield
of the stock
compared to
its 2003 price
9.5
euro cent
dividend
per share
1,248
million euro
of added value distributed
to local stakeholders

The commitment to reduce the investment risk

Hera pays great attention to the monitoring of the risk components associated with the trend of the stock on the stock market, such as the volatility of the listed prices and the liquidity of the market trading.

Hera and peer 3-year Beta

Once again in 2017, the stock disclosed a volatility index of the listed prices (Beta index) more conservative than the average of the shares in the sector. This characteristic is consistent with the strong resilience of the economic results, the low risk profile and the soundness of the governance.

The daily average volumes in 2017 came to 2.3 million shares traded (+16.9% compared with 2016), while the average equivalent value of the daily trading came to Euro 6.1 million (+30.9% compared with 2016). The average volumes traded were better with respect to that reported by the peers who by contrast disclosed a more limited increase of +12.6%. The greater liquidity of the daily trading with respect to the peers made it possible to draw the values of the sales orders closer to those of the purchase orders, revealing a lower spread (0.28%) with respect to the average of the other securities in the sector (0.34%). A more consistent comparison with the securities not included in the FITSE MIB index (such as for example Acea and Iren) discloses an even more favourable condition (0.28% with respect to 0.39%).

Value of the trading in 2017 and 2016 compared (in millions of Euro)

The liquidity of the stock market trading is also the result of intense dialogue with the financial market operators, with around 369 contacts and meetings in 2017, and the launch of new relations with professional investors which have an investment style consistent with the share profile of the Group.

The diversification of the institutional investors between the shareholders of the company is also an important factor for facilitating an on-going evolution of the shareholding structure and a balance of the listed prices of the stock over time. As the following diagrams show, Hera presents a balanced geographic and investment style diversification of the professional investors, benefiting the resilience and low volatility of the stock.

Institutional shareholding structure

An increase of the “Index” securities from 11.1% in 2016 to 19.7% in 2017 is evident; these adopt a so-called “passive” investment strategy which aims to replicate the performance of an underlying element or select the securities on the basis of pre-established parameters. These securities also include the afore-mentioned “ETF Dividend Aristocrats”, which invests only in securities which over the last 10 years have paid constant or growing dividends.

The Hera stock is included in the FTSE Mid Cap, FTSE All Share and FTSE Italia Servizi Pubblici of Borsa Italiana share indexes. During 2017, the stock was constantly included – in the four quarterly reviews – within the reserve list for inclusion in the FTSE Mib index, the basket which contains the leading forty companies in the country in terms of free float and liquidity of the trading.

The ethical indexes include securities of excellent companies from the standpoint of business sustainability in order to facilitate the investment choices of socially responsible funds (Sri). The organisation of these indexes considers that the companies with sustainable management, from an environmental standpoint, as well as with regard to the dealings with the stakeholders and the corporate governance, obtain significantly higher results than their competitors over the long-term.

The Hera Group belongs to six ethical indexes: FTSE Environmental Opportunities All Share Index, FTSE EO Waste and Pollution Control Technology Index, FTSE EO Water Technology Index, FTSE EO Water Technology 30 Index, Thomson Reuters Diversity and Inclusion Index and TR top 100 global energy leader.

 Ethical indexes in which the Hera stock is present